Detroit defaults on debt

(Reuters) – Emergency manager Kevyn Orr said Detroit will stop making payments on some debt, including one scheduled on Friday, and proposed debt holders take a drastic cut in the money they are owed to stave off the largest municipal bankruptcy filing in U.S. history.

In a meeting with creditors, Orr for the first time presented a detailed proposal calling on the holders of nearly $17 billion in Detroit debt to make substantial concessions.

Orr said the city was “insolvent” and needed shared sacrifices from everyone, including debt holders, to have any hope of a revival.